Suppose a country's output is $440 billion and its population is 110 million.Now suppose that both its output and its population increase by 24 percent.As a result of these changes, its new level of per capita output will be:

Question

Quizplus · Accepted Answer

The initial per capita output is $440 billion / 110 million = $4,000. With a 24% increase, both output and population become 1.24 times their original values, so the per capita output remains $4,000.

Suppose a Country's Output Is $440 Billion and Its Population